[25 & 26 GEO. 5.] Government of India Act, 1935. [Cn. 42.]

(2) All enactments relating to any such loans, guaran- A.P. i9gsL
tees and other financial obligations of the Secretary of

State in Council as aforesaid shall, in relation to thos*-
loans, guarantees and obligations, continue to have effect
with the, substitution therein, except in so far as the
context otherwise requires, of references to the Secretary
of State for references to the Secretary of State in Conn •
ciL and with such other modifications and such adaptations
as His Ma;esty in Council may deem necessary.

(3) Xo deduction in respect of taxation imposed by or
under auv exist 1113 Indian la\v or any law of the Federal
or a Provincial Legislature shall be made from any pay-
ment of principal or interest in respect of any securities,
the interest whereon is payable in sterling, being a pay-
ment which would, but for the provisions of this Act, have
fallen to be made by the Secretary of State in Council.

(4) If in the case of any Local Government in India
there are outstanding immediately before the commence-
ment of Part III of this Act anv loans or other financial
obligations secured upon the revenues of the Province,
all liabilities in respect of those loans and obligations shall,
as from that date, be liabilities of the Government of,
and shall^be secured upon the revenues of, the correspond-
ing Province under this Act.

(5) Any liabilities in respect of any such loan, guaran-
tee or, financial obligation as is mentioned in this section
may be enforced in accordance with the provisions of the
next succeeding section.

(6) The provisions of this section apply to the liabili-
ties of the Secretary of State in Council in respect of the
Burma Railways three per cent. Debenture Stock, but,
save as aforesaid, do not apply to any liability solely in
connection with the affairs of Burma or Aden.'

179.—(1) Any proceedings which, if this Act had not Legal
been passed, might have been brought against the Secretary
of State in Council may, in the case of any liability arising
before the commencement of Part III of this Act or arising
under any contract or statute made or passed before that
date, be brought against the Federation or a Province,
according to the subiect-matter of the proceedings, or, at
the option of the person bv whom the proceedings are
brought, against ^the Secretary of State, and any sum
ordered to be paid by way of debt, damages or costs in
any such proceedings, and any costs OP expenses inclined

115